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KenGen pays record Sh6bn dividend after 54pc profit growth
The Kenya Electricity Generating Company (KenGen) head offices in Nairobi.
Power producer KenGen has declared a record dividend of Sh0.9 per share or a total of Sh5.93 billion after reporting a 54.2 percent net profit growth in the year ended June 2025.
The dividend will be paid on February 12, 2026, to shareholders who will be on the register as of November 27, 2025.
The new payout marks a 38.4 percent jump from the prior year’s Sh4.28 billion or Sh0.65 per share.
The combination of higher earnings and increased distribution to shareholders has driven the company’s share price rally over the past year to cross the Sh10 mark.
The company, which previously retained most of its earnings to finance its capital-intensive projects, is now distributing more than half of its net income to shareholders in a signal that it has adequate resources to fund its operations.
KenGen’s net profit in the review period rose to Sh10.4 billion from Sh6.7 billion a year earlier, with the Nairobi Securities Exchange-listed firm benefitting from lower costs.
Operating expenses shrank by Sh4.1 billion to Sh35.1 billion, compensating for a decline in net sales to Sh46.4 billion from Sh48.2 billion.
The company attributed the lower costs to reduced depreciation and a fall in overhead expenses as it continues to implement efficiency measures.
The drop in sales was due to lower geothermal and steam revenues, the power producer said. The company has diversified power generation sources, including hydro, thermal and wind.
KenGen also booked a foreign exchange gain of Sh1.45 billion, an improvement from a currency loss of Sh722 million the year before.
The shilling traded relatively better in the review period compared to the prior year, benefitting KenGen, which has multiple liabilities denominated in foreign currencies, including the US dollar, Euro and Japanese Yen.
“The improvement was largely driven by the strengthening of the Kenya Shilling against major currencies during the year compared to the previous period,” the company said.
KenGen’s finance costs also declined to Sh2.2 billion from Sh2.8 billion, contributing to the profit growth.
The company says it plans to add more power generation capacity to the national grid in the coming years, including through expansion of existing plants.
“Our near-term pipeline of 252.82 MW (megawatts) continues to advance steadily, anchored by flagship projects such as the 63 MW Olkaria I Rehabilitation, the 42.5 MW Seven Forks Solar Project, and the Gogo Hydro Power Plant Upgrade (8.6MW),” KenGen said.
“These projects, alongside the Wellhead Leasing Geothermal Project (58.42MW), and Olkaria VII Geothermal Power Project (80.3 MW) in the medium term, will strengthen grid reliability, stimulate industrial growth, and advance Kenya’s transition to a clean and sustainable energy future.”
The National Treasury, with a 70 percent stake in KenGen, will collect the largest dividend of Sh4.1 billion in the upcoming payout.
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